Bilfinger, the German engineering and services company, has announced it is selling its Construction business segment and it is is intensifying its focus on its core business, which comprises engineering and services for industrial facilities, power plants and real estate.
The engineering and services group therefore intends to part with significant portions of its civil engineering business which generated a volume of approximately €800 million in 2013.
The offshore wind business, the construction of power grids and units specialized in steel construction with a volume of about €200 million in the past year are not included in the planned sale. The offshore wind and power grid businesses, which in 2013 together generated an output volume of €140 million will be brought together in a new division and allocated to the Power business segment.
Bilfinger will report on the business activities that are to be sold as 'Discontinued operations' beginning in the second quarter of 2014. The company expects that the selling process can be completed within one year.
Bilfinger also confirmed last week that it had offered to buy privately owned British commercial property consultant GVA Grimley Holdings.
GVA has said that Bilfinger is its favoured strategic merger partner. A memorandum of understanding has been agreed, subject to outstanding legalities and a shareholder vote.
Exchange of contracts and completion is expected before the end of June 2014. The transaction will involve a transfer of GVA's existing shares to give Bilfinger Real Estate 100% ownership.